retail

FARHAN.INAMDAR

PRSENTATION By

KRET’S

TRIDENTINSTITUTE OF MANAGEMENT

SCIENCES

RETAIL

Weekly MarketsVillage FairsMelas

Convenience StoresMom and Pop/Kiranas

Khadi StoresCooperatives

Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasive Reach

Government Supported

Historic/Rural Reach

Modern Formats/ International

Evolution of Indian retail

Source of Entertainmen

t

Neighborhood Stores/Convenie

nce

Availability/ Low Costs / Distribution

Shopping Experience/Efficie

ncy

“Includes all the activities of selling products or services to the end consumers with added value”.

What is Retailing?{ Derived form a French word “Retailer”

Meaning : to cut a piece off or to break bulk }

Sale of goods/Services to the ultimate consumers- Personal, Family or Household use.

Thus involves more than just selling products-(Services)

Final leg in the distribution channel

Is labor intensive

Retailing is..

Retailing involves..

Identifying the target markets (customers)

Interpreting the needs of the targeted customers

Developing good assortment of merchandise

Presenting them in an effective manner so that customers find it easy and attractive to buy

TARGET CUSTOMERS(BIG BAZAAR)

Married couples Unmarried couples Income Group Rs 8000 – Rs 35000 per month Age Group All age group

Retailing has multiple functions-

Creates Market & Generates Employment

FUNCTIONS OF RETAILERS

FUNCTIONS OFRETAILERS

UNDERSTANDINGCUSTOMER NEEDS

& WANTS

PROVIDING ASSORTMENT

OF GOODS SERVICES

PROVIDINGSERVICES TO CUSTOMERS

BREAKING BULK

HOLDINGINVENTORY

PROVIDINGINFORMATION TO

SUPPLIERS

Understanding Customer’s Needs & Wants

Difference between need and want

Understand what products and services are required by the customers

Breaking the Bulk` Manufacturers normally send in cartons/cases/bags

Retailers breaks these bulk suitable to the customer’s need

Breaking Bulk: Breaking large shipments into smaller

Providing Services

Provision of credit limit & hire-purchase facilities

Home delivery of goods/services

Provision of warranty, after sale service, customer complaint resolution

Helping customers choose a product/service

Displaying products for customers ease of selection

Holding Inventory

Help the customers in keeping the inventory already broken into user-friendly sizes/prices

Help the customers in making the products available at all the time at relatively stable prices.

Helps the customers in reducing the storage costs/losses

Providing Information to Suppliers Retailers are in direct contact with the

end consumers

Feed back from the customers, comments, suggestions etc..

Market/Source of competitor information

TYPICAL CHANNEL OF DISTRIBUTION

Manufacture

Wholesaler

Retailer

FinalConsumer

Dealer

Specialty Store: (Narrow product line ) E.g. Athlete’s Foot. Reebok, Nike,

Department Store: (Several Product lines) E.g. Pantaloons, Shoppers'

stop

Convenience Store: (Limited line of high turnover convenience products,

Small store in residential area, ) E.g. Local retail shops open 24/7

Discount store: Standard or specialty merchandise low price, low

margin, high volume stores (Big Bazaar, Wal-Mart)

Types of Retailers

CONT…

Super markets: (Huge Selling space, routinely purchased food and

household items. Plus services (Food World, More Retailing)

Off-price retailer: Leftover goods, overruns, irregular merchandise

sold at less than retail price E.g. Factory outlets

Catalog Showroom: Broad selection of high markup, fast moving, brand-

name good sold by catalog at discount. E.g. Oriflame, Amway

Types of Retailers Based on merchandise and pricing

Departmental Stores

Specialty Stores

Discount Stores

Supermarkets & Hypermarkets

Department StoresA large store selling:

Broad Variety & Deep Assortment

Offer considerable customer services

Organized into physically separate departments Ex: Shoppers' Stop, J C

Penny, Regional Malls

The Characteristics :

Located in the market area or a major shopping center

Availability of parking space

Freedom for the customers to move around

Relatively high prices with margins large enough

Continued..

Speciality Stores Have narrow product line with deep

assortment

Provides higher degree of customer service

Better selection with the assistance of

sales people.

Discount Stores General merchandise retailer

Offers broad variety & assortment

Limited services and low prices

Located in the lower priced areas away from the market

Dependence on the shoppers

Low cost fittings

No free services such as delivery to door etc..

Relies on heavy advertisement in the nearby areas

No free services such as delivery to door etc..

The characteristics :

Super Market , Superstores & Hypermarkets

Super Market Self-service (Majorly) food store offering groceries along with other household maintenance products Size of the store- <25000 Sq Ft.

Low cost, low margin, high volume stores

Continued..

Superstores Larger supermarkets Size of the store- 25000 Sq Ft +.

Also offers products and services like pharmacy, bakery, chats, salad bar etc under one roofEx: Nilgiris

Hypermarkets Very large in size Size of the store- 50000 Sq Ft +.

offers mainly grocery, general merchandise goods, flower shop, photo shop etc..

Selling huge volumes at less margins

Similar to that of the discount stores.

Continued..

MERCHANDISING

The activity of trying to sell goods or services by advertising them or displaying them attractively.

PROBLEMS IN ORGANISED RETAIL IN INDIA Stiff competition Opposition to FDI Shortage of retail space Customs duties Shortage of retail space Multiple and complex taxation system Poor supply chain Trained work force Lack of Retailing Courses and study options Technology

THE ORGANIZED PLAYERS

Indian companies Future Group Reliance Retail Bharti Shoppers'Stop Pyramid Aditya Birla Group Subhiksha Spencer Group Tata – Westside, Tata – Chroma

Foreign Players Nike (Single

brand) Levis (Single

brand) Wal-mart (JV) Metro

(Cash&Carry)

CONCLUSION

Government has to formulate a separate policy for the industry

FDI needs to be encouraged Land acquisition rules required modification  Retail as a separate industry

THANK

YOU